MKTG Exam 2: Ch 13, 14, 15, 16, 17, 18 ((LOTS OF STUFF LOL))

Six ounces of Keith's Gourmet Beef Jerky sells for $10.50. The fixed costs for its manufacturer totals $5,000, and each 8-ounce package of beef jerky has a variable cost of $6.50. Compute the dollar break even point. $13,000 $13,100 $13,200 $13,300 $13,400

$13,100

Rocky Mountain Gift Products sold its products through wholesalers and retailers--allowing the wholesalers a markup of 25 percent and retailers a markup of 40 percent. If the retail selling price is $100 and the manufacturer's cost is $30, what markup in dollars did Rocky Mountain Gifts Products receive on the sale of this product? (Select the closest answer) $12.00 $13.00 $14.00 $15.00 $16.00

$15.00

A retailer pays $75 for a leather jacket and desires a 65% mark-up on products of this type. What will be the price to consumers for this jacket (Select the closest answer) $214 $215 $216 $217 $218

$214

On May 15, Ann's Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If Ann pays the invoice by May 25, she should make her check out for: (Select the closest answer). $225 $235 $245 $255 $265

$255

A retailer pays a wholesaler $24.00 for an item and then sells it with a 50 percent markup based on cost. The retailer's selling price is: (Select the closes answer) $32.00 $48.00 $36.00 $24.50 $40.00

$36.00

The total fixed costs for a manufacturer of road maps is $25,000, and its unit variable cost is $3. The company sells 20,000 maps and just breaks even. What is the map's selling price? (Select the closest answer). $3.75 $4.00 $4.25 $4.50 $4.75

$4.25

A manufacturer sells a product for $35 to a wholesaler, and the wholesaler sells it to a retailer. The wholesaler's normal markup (based on selling price) is 20%. The retailer prices the item to consumers to include a 30% markup (also based on selling price). What is the selling price to the consumer? (Select the closest answer) $60.00 $63.00 $66.00 $69.00 $71.00

$63.00

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The producer can expect AVC of ____________ with the third doubling (within $.10). $10.13 $10.35 $9.11 $9.42 None of the above is within the specified boundaries.

$9.11

Blue Ridge Knives wants to set its selling price on a custom knife so that the retail list price will be $150--taking into account markups of 10 percent at wholesale and 30 percent at retail. At what price should Blue Ridge Knives sell the item to wholesalers? (Select the closest answer). $80.00 $85.00 $90.00 $95.00 $100.00

$95.00

Consider the following data: TFC = $1,500,000 per year; price = $.79; AVC = $.39. What is the Unit Contribution? (Select the closest answer) .39 .49 .59 .69 .79

.39

Organic Specialties sells organic mixes for soups. The company produces 5,000 packages per day. The total variable cost for making one bag of Organic split pea soup is $3. The average fixed cost per bag is $.90. The company charges $6.50 per bag and earns a 40 percent profit. Calculate the break-even point in units. 1,200 1,300 1,400 1,500 1,600

1,300

Rocky Mountain Furniture Co. has total fixed costs of $100,000 a year. The owner estimates that average variable costs for its products are $135 next year. Products are sold directly to retailers through a broker. The broker's commission is included in the estimate for variable costs. The average selling price to retailers will be $175. If total industry sales are expected to be about $5,000,000 next year, what market share does Rocky Mountain Furniture need to break even? (Select the closest answer) 5% 10% 15% 20% 25%

10%

The rent for a booth at the local flea market is $150 per month with a $15 charge for utilities. The variable cost per picture frame sold is $5. The selling price for each frame is $20. Calculate the break-even point in units. (round to the nearest unit). 10 11 12 13 14

11

Cash discount terms of 2/10, net 60 on an invoice would--in effect-- amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice within the 10 days allowed. 72 14 18 36 22

14

Given the following data, find the break-even point in units: TFC = $1,500,000 per year; price = $.79; AVC = $.39. (Select the closest answer). 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000

3,750,000

The Gulfport Cycle Shop bought two motorcycles for a total of $2,000 and sold each one for $1,500. The markup percent (based on selling price) was closest to: 30% 43% 50% 53% 55%

30%

DrainKing produces an excellent professional drain-cleaning machine sold to plumbing businesses. The total variable costs for making each unit are $325.00. DrainKing's average selling price for the unit is $750.00. DrainKing's fixed costs of production and sales are $4,500 per month. If DrainKing desires $10,000 in profit each month, how many units must it sell each month? (Select the closest answer) 30 32 34 36 38

34

Assume that you are estimating the demand curve for a product using buy-response data and have collected the following via a survey: Price % Who Will Buy 5.00 1% 4.75 10% 4.50 25% 4.25 45% 4.00 60% 3.75 75% 3.50 90% Assume that research suggests that your target market consists of approximately 500,000 persons. You anticipate that each buyer will purchase an average of 1.5 units of the product. What level of demand can you expect at the $4.00 price? (round to the nearest unit). - 450,000 units - 300,000 units - 60 units - 750,000 units - none of the above

450,000 units

Consider the following data: TFC = $1,500,000 per year, price = $.79; AVC = $.39. What is the Contribution Margin? (Select the closest answer) 39% 49% 59% 69% 79%

49%

For which of the following products would a retailer be LEAST likely to use odd pricing? Chewing gum A designer evening dress Lean Cuisine diet meals Reams of computer paper Bic cigarette lighters

A designer evening dress

Which of the following channels for consumer goods is Avon using when it sells its products at the avon.com website? - A direct channel to consumers - Producer to retailer to consumer - Producer to agent to retailer to consumer - Producer to wholesaler to retailer to consumer - Producer to agent to wholesaler to retailer to consumer

A direct channel to consumers

In a corporate vertical marketing system, A firm at one level of the channel owns the firms at the next level or owns the entire channel. Distribution activities are coordinated by an agent. Promotion and distribution are controlled by the strongest channel member. Independent firms operate under contracts which specify how distribution and promotion will be handled. None of the above is true.

A firm at one level of the channel owns the firms at the next level or owns the entire channel

Which of the following retailers is most likely to be a member of a retailer cooperative?

A hardware store

Which of the following is least likely to be a condition necessary for employing a skimming pricing strategy? A large, highly price-elastic market exists for the product The product is protected by patents The product is associated with a high capital investment serving as a 'barrier to competitive entry' Strong brand preferences exist due to the product's unique characteristics Producer has control over a critical material needed for production of the product

A large, highly price-elastic market exists for the product

Denton Plumbing, Inc. buys plumbing supplies, piping, fixtures, and tools from different manufacturers and resells them to construction companies. Denton is MOST LIKELY: A merchant wholesaler A drop shipper An agent middleman A manufacturer's agent A rack jobber

A merchant wholesaler

Which of the following retailers is most likely to be a member of a voluntary chain? A supermarket A toy store A video rental store A gourmet store featuring Thai cuisine A fruit and vegetable stand

A supermarket

Lois Lane wants to open a convenience store in Cripple Creek Colorado. What kind of wholesaler will likely provide her chewing gum, tobacco products, candy bars, and other snack foods? A desk jobber A commission merchant A truck jobber A manufacturer's sales office A broker

A truck jobber

Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its product? A well-established, international company A large cereal manufacturer that has developed a gluten-free cereal line A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon An international sporting goods manufacturer that wants to add a line of snow toboggans A company that wants to introduce product line extensions to its current market.

A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The experience constant or experience rate is interpreted as: - AVC declines by 90% with each doubling of cumulative output - AVC declines by 9% with each doubling of cumulative output - AVC declines by 10% with each doubling of cumulative output - AVC declines by 1% with each doubling of cumulative output - None of the above is correct

AVC declines by 10% with each doubling of cumulative output

Assemblers are commonly found in the agricultural and fishery industries. Large food products producers (Hunt, Campbell, StarKist) do not want to buy direct from many small farmers or fishermen. They prefer to buy in large quantities from these assemblers that have already pooled these smaller quantities. The assembler is performing which channel function? Accumulating Allocating Negotiating Assorting Sorting

Accumulating

Bringing together relatively small quantities purchased from suppliers and combining these quantities into a single larger shipment for sale to a buyer is called: Allocating Assorting Facilitating exchange Accumulating Buying and selling

Accumulating

The "making bulk" channel function is formally called: Accumulating Allocating Negotiating Assorting Sorting

Accumulating

Wal-Mart, because of its sheer size and market position, is able to coordinate distribution activities through its market power. This is an example of the ______________ type of VMS. Administered Corporate Retailer Cooperative Voluntary Chain Contractual

Administered

Channel captains are associated with which type of channel structure? Administered VMS Corporate VMS Contractual VMS Voluntary chain Franchise

Administered VMS

General Mills, with its lines of cereal, snack foods, and baking products has substantial market position and brand equity making it possible to coordinate channel activities via is market power. This form of distribution illustrates a(n): Contractual VMS Administered VMS Voluntary Chain Corporate VMS Franchise system

Administered VMS

_________ is any form of one-way, paid communication delivered en masse through electronic, print, or Internet-based media with the purpose of informing, reminding, or persuading. Advertising Personal selling Sales promotion Publicity Public relations

Advertising

Customers who purchase higher value consumer durable products such as electronics, appliances, and sporting goods equipment generally demand more information and often welcome "expert" advice. Which forms of promotion are best suited to these products? Advertising and personal selling Personal selling and sales promotion Advertising and sales promotion Advertising and Public relations Personal selling and publicity

Advertising and personal selling

During the introductory stage of the product life cycle, promotion objectives are to stimulate primary demand by communicating product benefits, create brand awareness, and stimulating trial. The most appropriate forms of promotion to accomplish these tasks are __________ . Advertising and personal selling Advertising and sales promotion Advertising and publicity Personal selling and sales promotion Publicity and public relations

Advertising and sales promotion

The use of ____________ is most appropriate for consumers engaged in low involvement decisions. Advertising and sales promotion Advertising and personal selling Personal selling and sales promotion Personal selling and publicity Sales promotion and publicity

Advertising and sales promotion

Firms that are pursuing a strategy of price competition are more likely to: Employ follow-the-leader pricing in order to avoid price wars in their industry Aggressively use lower prices to buy market share from competitors Set prices higher than competitors to signal greater value to buyers Set prices lower than competitors to enhance the quality images of their brands. Price their brands in a comfortable competitive range to avoid "rocking the boat."

Aggressively use lower prices to buy market share from competitors

As practiced today, telemarketing is used for which of the following? Making sales via the telephone Engaging in customer service and relationship management Gathering customer information Prospecting for new customers All of the above

All of the above

The AVC curve is typically 'u-shaped' because: Scale economies initially drive unit variable costs down as sales volume increase. The experience curve tends to drive unit variable costs down as producers become more knowledgeable of how to make products. Unit variable costs tend to increase after some level of output due to 'diseconomies of scale' All of the above None of the above

All of the above

The key principles of effective marketing communications include: Message must be received and understood by the receiver Marketer should emphasize FAB Identify the features, attributes, and benefits that are meaningfully different Communicate the differentiating features, attributes, and benefits All of the above

All of the above

Which of the following are characteristics of comparative advertisements? Competing brands are directly compared with one another, usually by name Positives of the advertised brand are emphasized, negatives of the competing brands are highlighted Consumers already using the competing brands are more likely to pay attention to the ad Comparative ads provide consumers more information upon which to make a choice All of the above

All of the above

With respect to the coefficient of elasticity, a value of "e" equal to -1.5 means that: Demand changes by -1.5% for each 1% change in price For every 1% change in price, demand changes by -1.5 times that amount Demand is price elastic Demand and price are inversely related All of the above

All of the above

Which of the following is not an advantage of vertical marketing systems?

All of the above are advantages (Improved cooperation between channel members, Better service to ultimate consumers, Reduced conflict in the channel, Improved efficiencies and reduced cost)

Department stores are facing serious competition from discount stores and category killers that offer the same or similar merchandise at lower prices. Which of the following actions are being taken by some department stores, such as Nordstrom, to combat these inroads? Target upscale shoppers who are less price-elastic Focus on higher margin products such as clothing, jewelry, and cosmetics Individual departments may operate as upscale specialty stores stressing enhanced "atmospherics." All of the above are being employed Only a and b above.

All of the above are being employed

Which of the following is the key characteristic of IMC? A unified message is delivered to all stakeholders Two-way communications are employed to solidify relationships with stakeholders All elements of the communications program are fully coordinated Marketing research is employed to understand the needs of stakeholders All of the above are important

All of the above are important

When consumers assign "value" to products and services they take into account which of the following? The price of the product or service The benefits received from the product or service The emotional costs associated with obtaining the product or service The effort that must be expended in acquiring the product or service All of the above are part of the value equation.

All of the above are part of the value equation.

A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that: any price differences were to "meet competition in good faith." the price differences did not injure competition. the price differences were justified on the basis of cost differences. the products were not of "like grade and quality." All of the above are possible defenses against price discrimination charges.

All of the above are possible defenses against price discrimination charges.

The likely consequences of firms choosing to engage in price competition include all of the following except __________. Higher probability of price wars with other firms. Lower overall profits for firms in the industry. Higher levels of scrutiny by federal and state regulatory agencies. Greater tendency for firms to collude with one another to maintain prices All of the above are potential consequences.

All of the above are potential consequences.

Using ___________ the communications budget is essentially equal to any money left over after all other expenditures have been met. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

All-You-Can-Afford

Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amounts to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate? Accumulating Allocating Sorting Assorting Grading

Allocating

Procter & Gamble sells in large quantities to Core-Mark, a large grocery wholesaler that supplies a large number of independent and chain grocers. Core-Mark then resells in smaller quantities to its retail grocery customers. Core-Mark is performing which channel function? Matching Allocating Negotiating Assorting Sorting

Allocating

The ____________ function is typically performed when wholesaling middlemen buy from very large manufacturers and resell in smaller quantities to smaller retailers.

Allocating

Which supply chain function breaks up the large quantities produced by manufactures into smaller quantities at the retail level from which you will choose.

Allocating

Merchant wholesalers: Are the smallest segment of wholesaling firms when measured by number of establishments. Are independently owned firms that engage primarily in wholesaling and take title to products being distributed. Are independently owned firms that do not take title to the products being distributed. Are manufacturer-owned organizations that perform primarily wholesaling tasks for their owner companies. Engage in both wholesaling and retailing activities for manufacturers and consumers.

Are independently owned firms that engage primarily in wholesaling and take title to products being distributed.

One of the primary keys to wholesaling and retailing success is matching the variety of products sold to the wants and needs of customers. This process is the ____________ channel function. Accumulating Allocating Negotiating Assorting Sorting

Assorting

Wal-Mart distribution centers bring together a large variety of different kinds of products from a wide range of manufacturers. Wal-Mart is performing the ______________ function when, based on what each store's needs are at the time, it combines a number of different products together for shipping to each of its Wal-Mart stores. Accumulating Assorting Allocating Buying and selling Sorting

Assorting

When retailers such as Kroger or Winn-Dixie bring together a variety of different products to offer their customers, they are peforming the __________ channel function. Accumulating Allocating Negotiating Assorting Sorting

Assorting

When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customers want, it is engaged in _______ . Accumulating Allocating Sorting Assorting Matching

Assorting

The internal and external physical characteristics of stores that shape the retail store's image are referred to as: Atmospherics Retail personality Retail position Retail brand image

Atmospherics

__________________ arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise.

Backward integration

Consumers who spread positive word-of-mouth about products or brands are called _________. Brand evangelists Brand missionaries Opinion leaders Innovators

Brand evangelists

The power of __________ communications is based on the fact that somebody whom the message recipient knows and likes becomes the credible, believable, and trustworthy face of the brand. Brand evangelists Brand missionaries Opinion leaders Innovators

Brand evangelists

A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to both parties. Selling agent Manufacturers' agent Drop shipper Broker Commission merchant

Broker

Consumers normally pay for film and processing separately. When Eckerd Drugstores advertises one price for the cost of a roll of film and this price includes the cost of processing the film, they are using Flexible pricing Bait pricing Prestige pricing Bundled pricing Promotional pricing

Bundled pricing

____________ are responsible for managing a group of related products stocked by a retail store. Stocking managers Category managers Product line managers Inventory managers

Category managers

For which of the following products is exclusive distribution most likely? Caterpillar tractors Citizen watches Ford Mustangs Intel micro-processors Gillette razors

Caterpillar tractors

__________ are employed when advertisers refuse to engage in the consent decree. The FTC can this remedy to force firms to remove offending communications from circulation. Cease and desist order Consent decree Corrective advertising Fines

Cease and desist order

Celebrities tend to be perceived as credible sources that can influence consumer purchasing behaviors for which of the following reasons? Source expertise Source trustworthiness Source believability Source honesty Celebrities often score high on all of the above

Celebrities often score high on all of the above

Advertising in which brands are directly compared against one another are called _______ . Competitive ads Comparative ads Two-sided ads Multi-brand ads Positional ads

Comparative ads

With _________ IMC budgeting, the size of the promotion budget is based on industry comparisons. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Competitive parity

The ____________ is defined as those prices bounded by customer demand at the high end and costs at the low end. Price floor Price ceiling Competitive price range Demand curve Optimal price

Competitive price range

The simplest remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is __________ . Cease and desist order Consent decree Corrective advertising Fines

Consent decree

Two-sided ads present both the positives and negatives for brand and then usually attempt to refute the negatives. The effectiveness of such ads as is explained by: Consumer tendencies to counter-argue with the positive points may be diffused due perceived increased credibility of the ad The "recency effect" in which the negatives are presented first and, therefore, overwhelmed by the positive points presented last The "primacy effect" in which the positives are emphasized more than the negatives None of the above. There is no evidence that two-sided ads work any better than one-sided ads.

Consumer tendencies to counter-argue with the positive points may be diffused due perceived increased credibility of the ad

Which of the following is least associated with the concept of 'price competition?' There is a stronger likelihood of price wars occurring Governmental agencies are more likely to monitor and intervene in pricing activities Firms aggressively employ price as a part of the marketing mix Consumers are more likely to be price inelastic All of the above are unlikely

Consumers are more likely to be price inelastic

__________ carry carefully selected lines of high-turnover consumer food and non-food products, along with various grades of fuel. The focus is to serve "rushed" consumers who place more emphasis on time and place utility as they purchase and are willing to pay higher prices. Supercenters Supermarkets Discount stores Category killers Convenience stores

Convenience stores

In a _______ , each level in the supply chain operates under independent ownership. In other words, the producers and their suppliers, as well as all downstream marketing intermediaries (wholesaling middlemen and retailers) are separate business entities. Conventional supply chain Vertical marketing system Horizontal marketing system Traditional supply chain

Conventional supply chain

The positive rewards accruing to consumers from purchase and use of a brand along with the use of reminder advertising positively reinforce the consumer's brand purchase decision during the __________ stage of the Hierarchy of Communications Objectives. Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Conviction and brand loyalty

Polo (Ralph Lauren) not only manufactures clothing but also operates its own retail stores (factory outlets). Polo is an example of a(n):

Corporate VMS

Chain stores with 11 or more retail units or locations are technically called as ______________ . Multi-unit chains Corporate chains Independent retailers Rack jobbers Superstores

Corporate chains

The Polo outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure? Administered vertical marketing system Corporate vertical marketing system Franchise system Retailer cooperative Voluntary chain

Corporate vertical marketing system

Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store. Such true 'factory outlets' are examples of: Off price retailing Retailer cooperatives Administered vertical marketing systems Corporate vertical marketing systems. None of the above

Corporate vertical marketing systems.

Which of the following is the major disadvantage of nearly all cost-based pricing methods? - Costs are too difficult to determine for these pricing techniques to be truly effective. - Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques. - Most cost-based pricing techniques are technically too difficult to use in actual practice. - Cost-based pricing techniques generally are only used by manufacturers because a manufacturer can more precisely pinpoint the exact fixed and variable costs associated with its products.

Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques.

Custom Creamery located in South Dallas makes 2,000 pies per day. The total cost per raspberry-apple pie is $2.25. Its average fixed costs equal $1.00 per pie. The company has calculated that if its charges $4.50 per pie, it will realize a 55 percent profit on the total cost of each pie. What pricing method is Custom Creamery using? Expected pricing Experience curve pricing Marginal cost pricing Cost-plus pricing Mark-up pricing

Cost-plus pricing

Break-even analysis is normally conducted during the __________ stage of the price setting process. Setting price objectives Identifying price strategies Setting base price Cost-volume-profit analysis Pricing management

Cost-volume-profit analysis

The first, critical step in the Hierarchy of Communications Objectives is _________ . Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Creating awareness

Every time you buy a protein shake at Discount Sport Nutrition (DSN) you can have your Discount Sport Nutrition card punched. When the card has 12 punches, your thirteenth shake is free. DSN is using a _____ discount. Seasonal Cash Non-cumulative quantity Trade Cumulative quantity

Cumulative quantity

A retail firm that uses leader pricing is: Engaged in legal, but unethical price gouging. Cutting the regular price on a few items with the hope of attracting customers. Leading the industry in pricing and encouraging its competitors to raise their prices, too. Selling its most popular products at higher prices. Raising the price of its best-selling products.

Cutting the regular price on a few items with the hope of attracting customers.

Advertising by advocacy groups and governmental agencies that attempt to reduce demand for a product is called ________ . De-marketing Demand reduction marketing Controlled marketing Demand off-set marketing Re-marketing

De-marketing

With respect to the product life cycle, prices are usually lowest during the ___________ stage. Conceptualization Introduction Growth Maturity Decline

Decline

Which of the following best defines the meaning of "e" - the coefficient of elasticity? - Defines the change in total revenue for a given change in price. - Defines the percent change in price for every one percent change in revenue. - Defines the percent change in revenue for every one percent change in price - Defines the percent change in quantity demanded for every one percent change in price - None of the above

Defines the percent change in quantity demanded for every one percent change in price

A channel consisting of only producers and final customers, with no middlemen providing assistance, is called ____________ distribution. Selective Indirect Intensive Direct Administered

Direct

Time-Life regularly airs TV commercials promoting books, DVDs, and CDs. Consumers are shown 1-800 numbers and encouraged to use credit cards to make purchases. Time-Life is employing ___________. Direct mail Direct response advertising On-line retailing Direct selling Telemarketing

Direct response advertising

Which of the following is true about how direct selling differs from direct marketing? Direct selling is limited to face-to-face contact sales using door-to-door selling and party plan selling Direct marketing is limited by various "Green River Ordinaces" in a large number of communities Direct selling uses traditional promotional media to encourage consumers to buy products by mail, telephone, or internet Direct selling includes a number of techniques including direct mail, telemarketing, and direct response advertising There is no differences. These are different names for the same thing.

Direct selling is limited to face-to-face contact sales using door-to-door selling and party plan selling

All of the following are characteristics of direct selling except ___________. Sales commissions can be as high as 40-50% of the selling price. Sales staff tend to employ high pressure sales tactics Prices to consumers are generally inflated due to high sales commissions Direct selling is the cheapest form of selling because no retail store-front is required The negative image and high pressure tactics associated with direct selling makes it hard to recruit and retain sales personnel.

Direct selling is the cheapest form of selling because no retail store-front is required

provided in shallow, but reasonable, depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers. Off-price retailers Specialty stores Discount stores Category killers Department stores

Discount stores

Core-Mark, a large grocery wholesaler, maintains a number of _____________ at key points in the United States that receive products from a large number of manufacturers in truckloads. Deliveries are received, sorted, accumulated, and reallocated to retailers in an efficient and timely manner.

Distribution centers

Large single story facilities designed specifically for performing the accumulating, sorting, and allocating functions as efficiently as possible are ____________. Warehouses Distribution centers Storage facilities Cold storage warehouses Assembly facilities

Distribution centers

A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user Logistics network Production channel Distribution channel Marketing channel Wholesale channel

Distribution channel

_________ are wholesaling middlemen that buy and sell bulky commodities, such as coal and building materials. These products are very expensive to handle and ship, relative to their unit value. These wholesaling middlemen never physically handle the products they buy from their suppliers. The products are shipped directly from the supplier to the middlemens' buyers.

Drop shippers

Buck Rogers sells fiberglass resins and fiberglass wire to the many small sailboat manufacturers in southern California. He takes title to the products but does not handle them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to the sailboat manufacturers. Buck is a:

Drop-shipper

Farmer Brothers distributes its coffee to restaurants, delis, vending operators, and coffee services through a variety of channels to reach essentially the same customers. Farmer Brothers is engaging in the practice commonly referred to as: Dual distribution Multiple channel distribution Channel proliferation Channel adaptation Channel penetration

Dual distribution

Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___________ . Multi-channel marketing and distribution Direct distribution Dual distribution Retail distribution

Dual distribution

The tendency for producers to employ multiple channels of distribution to reach the same target markets is called:

Dual distribution (Sometimes the term 'dual distribution' is limited to situations in which producers employ multiple channels to reach the same target market. The term, in practice, is applied to situations in which firms use multiple channels to reach the same and different target markets.)

When BMW airs advertising that emphasizes the performance, driving enjoyment, and style of its M4 they are employing _____________ . Emotional appeals Rational appeals Functional appeals Benefit appeals Utilitarian appeals

Emotional appeals

____________ attempt to elicit affective or emotional responses from target audiences using humor, fear, and sex. Emotional appeals Rational appeals Functional appeals Benefit appeals Utilitarian appeals

Emotional appeals

All of the following are important components of IMC except ___________. A unified message is delivered to all stakeholders. Two-way communications are employed to solidify relationships with stakeholders All elements of the communications program are fully coordinated Marketing research is employed to understand the needs of stakeholders. Emphasis is placed on using cutting-edge digital media.

Emphasis is placed on using cutting-edge digital media.

A small manufacturer of custom cabinets wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers?

Employing an agent to handle sales to other intermediaries

Noncumulative quantity discounts are primarily offered by a seller in order to: Encourage the buyer to make all of his or her purchases from this seller over an extended period of time. Avoid having to offer promotional allowances. Give preferential treatment to certain customers. Encourage larger individual orders. Comply with the Robinson-Patman Act.

Encourage larger individual orders.

The Olympics Emporium is the only place in Dallas where a collector of Olympic memorabilia can buy a set of eight Olympic coins minted in 24K Gold priced at $15,000. What kind of distribution coverage strategy is being used?

Exclusive

____________ is the most restricted form of distribution. This form of distribution is best suited to specialty goods and some shopping goods, as well as industrial equipment and installations. Direct distribution Selective distribution Exclusive distribution Intensive distribution Multi-channel distribution

Exclusive distribution

A manufacturer has set the initial price of its product below the product's AVC. The manufacturer assumes that the low price will be attractive to enough consumers so that market share can be acquired very rapidly. The producer further assumes that, as additional market share is attained, AVC will be reduced substantially. In fact, when total sales hit the 20,000 unit point, the producer expects AVC to drop below price. The manufacturer is most likely making use of: Scale economies associated with increased manufacturing efficiency as plant capacity is approached. Reliance on the likely inelastic demand that should exist for this product. Reliance on a high quality, prestige image that can be expected to generate high levels of market demand. Experience curve effects. None of the above.

Experience curve effects.

With which geographic pricing strategy is the seller likely to have the lowest freight charge? Freight absorption pricing FOB mill pricing Uniform delivered pricing Geographic pricing Zone-delivered pricing

FOB mill pricing

Yesterday Delta Press in Dallas, Texas shipped 1,000 books to a retailer in Florida, 150 books to a retailer in Georgia, and 50 books to a buyer in Montana. However, Delta Press paid no freight charges. Which geographic pricing strategy did Delta use? Freight absorption pricing Uniform delivered pricing FOB plant pricing Zone-delivered pricing FOB destination pricing

FOB plant pricing

False, misleading, and deceptive advertising are regulated by the __________. FTC Act of 1914 Robinson-Patman Act Lanham Trademark Act Trademark Law Revision Act

FTC Act of 1914

Transportation firms, such as trucking companies and railroads, assist other supply chain members (producers, wholesalers, and retailers) by transporting products from point of production to point of consumption. In the context of supply chains, these transportation firms are called _________. Facilitating agents Physical distributors Logistical agents Distribution agents Vertical integrators

Facilitating agents

Grapevine Mills, located just outside of Dallas, TX is a fully enclosed 1.5 million square foot mall. The huge facility houses more than 200 well-known manufacturer and retail outlets, off-price retailers and unique specialty stores. In addition to a food court, the mall houses a variety of theme restaurants including Rainforest Cafe, Dick Clark's American Bandstand Grill, and the Eerie World Cafe. Grapevine Mills is classified as a _________. Neighborhood center Community center Regional center Power center Factory outlet mall

Factory outlet mall

With respect to the principles of marketing communication, FAB stands for: Function, attitudes, beliefs Function, attributes, beliefs Features, attributes, benefits Function, attributes, benefits Features, attitudes, benefits

Features, attributes, benefits

The most sever remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is __________ . Cease and desist order Consent decree Corrective advertising Fines

Fines

Even when production stops (i.e. no units produced), the firm still generally incurs some _________. Variable production costs Marginal costs Psychological costs Fixed production costs Total values costs

Fixed production costs

Which of the following is not a benefit of business format frachises for franchisees? Risk of failure is reduced Economies are obtained in purchasing and promotion Franchisees can better compete with larger corporate chains on a cost and price basis Franchisees have access to management expertise from the franchisor Franchisees are paid royalties by franchisors to offset their initial investment in the franchise.

Franchisees are paid royalties by franchisors to offset their initial investment in the franchise.

Texas Cable Corporation, sells heavy gauge wire cable to construction companies around the country. Customers pay shipping from Texas Cable's warehouse in Dallas. Recently, a new competitor in Florida has been taking away some of Texas Cable's Southern customers. If Texas Cable wants to compete in these distant markets, but not increase the cost of its product to other customers, it would probably switch to Specifying "F.O.B. Dallas" in its contracts Uniform delivered pricing Freight absorption pricing Zone pricing None of the above would help Texas Cable Corporation with its problem

Freight absorption pricing

In order to offset the competitive disadvantage of FOB plant pricing, Texas Granite Company in Dallas could use _____ pricing to ship its products to building contractors and furniture restorers in any part of the United States. Uniform delivered Freight-absorption Zone-delivered Market-skimming Market-penetration

Freight-absorption

If there is a traditional channel for consumer goods, it is: From producer to consumer From producer to retailer to consumer From producer to agent to retailer to consumer From producer to wholesaler to retailer to consumer From producer to agent to wholesaler to retailer to consumer

From producer to wholesaler to retailer to consumer

For which of the following products is intensive distribution most likely to be employed? - Ford Mustangs - Gillette razor blades - Apple iPad Pros - Rolex watches - Mont Blanc fountain pens

Gillette razor blades

Which of the following is a distinct advantage of the smaller independent retailer over its corporate chain store competitors? Better financed with more resources Access to experienced expert management Scale economies in purchasing and promotion Greater flexibility in operational decision-making at the individual store level Greater brand recognition

Greater flexibility in operational decision-making at the individual store level

Comparative advertising in which competing brands are directly identified in advertising messages is employed beginning in this product life cycle stage. Introduction Growth Maturity Decline

Growth

During the ____________ stage of the PLC, advertising objectives shift to communicating brand superiority by promoting the brand's differentiating characteristics relative to competing brands. Introduction Growth Maturity Decline

Growth

Advertisers attempt to move consumers through a series of steps beginning with becoming aware of a brand and ending with conviction and loyalty to the brand. This set of steps is referred to as _______ . Maslow's Hierarchy of Needs The consumer decision making process Hierarchy of Communications Objectives Pyramid of Promotion Objectives None of the above

Hierarchy of Communications Objectives

Products that are intended to convey prestigious or high quality images usually are priced _____________ . Lower than other brands in the product category Higher than other brands in the product category Competitively with lower priced versions of the product To avoid accusations of predatory pricing To avoid scrutiny by the FTC for possible price fixing

Higher than other brands in the product category

Assume that a number of Texas oil refiners decide to work together to uniformly restrict output with the goal of stabilizing declining prices. These firms are likely to be accused of ____________ . Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling

Horizontal price fixing

___________ entails pricing agreements between two or more firms operating at the same supply chain level. Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling

Horizontal price fixing

_______ involves every department in the firm becoming involved in developing and communicating messages to customers, channel members, other stakeholders, and publics to create a unified image of the organization and its products. IMC TTT WOM eWOM PLC

IMC

A vertical marketing system (VMS): Was the dominant form of distribution until the advent of the horizontal marketing system. Evolved because producers were not concerned with the needs of their middlemen. Directs that all marketing functions be performed by the wholesaler. Is an uncoordinated distribution channel in which retailers and wholesalers retain their freedom of operations. Improves the channel's operating coordination, efficiency, and effectiveness.

Improves the channel's operating coordination, efficiency, and effectiveness.

Direct channels for products are most likely for _________ .

Industrial installations

Communications designed to relay information to consumers about product characteristics, their function, and availability are called ____________ communications. Reminder Informative Persuasive Educational Determinant

Informative

The acronym IMC stands for ________. Integrated Marketing Communications Integrated Management Communications Integrated Marketing Channels Important Marketing Concepts None of the above

Integrated Marketing Communications

The term used when multiple transportation modes -- trains, planes, automobiles, trucks, pipelines, barges, etc. -- are employed to ship any item is ___________ .

Intermodal transportation

A retail store's _____________ include the decor, merchandise arrangement and crowding, general layout, background music, color schemes, scents, acoustics and noise levels, lighting, and cleanliness of stores. Internal atmospherics Internal personality Interior position Interior brand image

Internal atmospherics

Retailers work hard to design in-store sensory environments that positively affect one or more of consumers' five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusing on creating positive __________. Internal atmospherics Internal personality Interior position Interior brand image

Internal atmospherics

Personal selling is employed to reach intermediaries and persuade them to stock and promote the product primarily during the __________ stage of the PLC. Introduction Growth Maturity Decline All of the above

Introduction

Sales promotions, such as coupons and free samples, are employed to induce trial primarily in the ______ stage of the PLC. Introduction Growth Maturity Decline All of the above

Introduction

Humphrey Studio sells reproductions of European antiques. Last year sales were disappointing. The studio owner decided to increase the price of each item by about 25%. The next year there was a 20% increase in units sold. The studio apparently experienced: Profit programming Expected price effects Inverse demand The law of demand None of the above

Inverse demand

Montana Coffee Traders operates a coffee shop inside of Kroger's Supermarket in Whitefish Montana. Evidently, in this specific case, Montana Coffee Traders is a ____________ . Leased department retailer Corporate chain Franchise retailers Internet retailers Rack jobbers

Leased department retailer

Joe's Electronics Supply stocks electronic repair parts and related supplies and tools from various producers. Joe's sells primarily to small electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Joe's is a Manufacturers' agent Drop shipper Truck distributor Rack jobber Limited line (specialty) wholesaler

Limited line (specialty) wholesaler

____________ specialize in specific product lines, often carrying only a single line. The merchandise mixes are described as "narrow" and "deep." General merchandise retailers Limited line retailers Specialized line retailers Restricted line retailers

Limited line retailers

"Inventory in motion or at rest throughout the supply chain" is called: Channel management Materials management Physical distribution Logistics Transportation

Logistics

Jane Tuttle calls on the many gift shops at Estes Park, Colorado and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that he represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a: Rack jobber Drop-shipper Broker Manufacturers' agent Selling agent

Manufacturers' agent

Old Smokie, Inc. is a small producer of specialty equipment for smoking meats. The company does not have its own sales force and has just introduced a cooker which smokes meats 50% faster. The cooker will most likely be distributed by a: Truck jobber Manufacturers' agent Drop shipper Broker Commission merchant

Manufacturers' agent

Sandra Locke sells gluten-free specialty food products to grocery wholesalers and large retail grocery chains in Tampa. She sells for several manufacturers with noncompeting lines of gluten-free foods and earns a 4% sales commission. Sandra does not own or inventory the products she sells. Evidently, Sandra is a: Rack jobber Broker Truck wholesaler Selling agent Manufacturers' agent

Manufacturers' agent

When Nintendo video games were introduced into the United States, they were priced at an introductory price of $299. This price was $100 lower than the Sega games. Nintendo probably used _____ a pricing strategy to quickly gain a large share of the market. Market-skimming Market absorption Market penetration Cost-plus Value-set

Market penetration

The expected price for sunscreen is in the $4 to $6 price range. The introductory price for Shade UVA Guard by Schering-Plough was set high ($9.99) to recover its research and development costs. Schering-Plough was using a _____ strategy. Cost-plus Market-skimming Market-absorption Marginal cost Market-penetration

Market-skimming

The supply chain function in which buyers and sellers are brought together to perform exchanges is: Allocating Assorting Accumulating Matching Batching

Matching

Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called ___________ by logisticians. Physical distribution management Logistics management Materials management Channel management None of the above

Materials Management

Movement of parts and materials from their sources of supply into the manufacturing process is called: Channel management Materials management Physical distribution Logistics Transportation

Materials management

During the _______ stage of the PLC, advertising is mainly used to announce product improvements, reach additional target segments, and demonstrate new ways that consumers could use the product. Introduction Growth Maturity Decline

Maturity

During the _________ stage of the PLC, a major purpose of advertising is to "buy market share" from competitors. Introduction Growth Maturity Decline

Maturity

During the __________ stage of the PLC, the primary role of sales promotions is to tempt consumers into "brand switching." Coupons, point-of-sale devices, premiums, and price incentives are needed to entice consumers away from competing brands. Introduction Growth Maturity Decline

Maturity

Reminder communications are generally more appropriate during which stages of the PLC? Introduction and growth Growth and maturity Maturity and decline Introduction and decline

Maturity and decline

The entire range of products stocked by a retailer is its _______. Product mix Product portfolio Merchandise portfolio Merchandise mix Product line depth

Merchandise mix

When channel members haggle with one another over final prices and product placement within retail settings they are performing which channel function? Matching Allocating Negotiating Assorting Sorting

Negotiating

Convenience stores, barber shops, hair stylists, manicurists, deli's, and other small, specialty stores tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls

Neighborhood centers

With respect to the Communications Process, physical/psychological barriers, distractions, and other impediments to successful communication are called ____________ . Noise Encoding - decoding impediments Clutter Decryption limitations None of the above

Noise

When a seller attempts to employ promotion to shift the demand curve for its product to the right, such efforts represent: Price competition Economic diversification Market control Non-price competition Price fixing

Non-price competition

The _____________ method of budgeting is the best approach to employ, although not normally the easiest. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Objective and task

Using the ____________ budgets are set by first identifying exactly what communications objectives are being pursued and then setting the budget to achieve them. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Objective and task

With ____________ IMC budgeting, the overall budget is built up from specific budgets allocated to each promotional activity that is needed to achieve objectives. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Objective and task

In general, one-sided ads work better when consumers: a) are better educated b) Already agree with the advertiser's position c) Already prefer the advertiser's brand d) All of a, b, c above e) Only b and c above

Only b and c above

With ___________ IMC budgeting, the magnitude of sales determines the size of the budget, rather than promotion driving sales. Percentage of Sales and All-You-Can Afford Percentage of Sales and Objective and Task Competitive parity and Percentage of Sales All-You-Can-Afford and Objective and Task

Percentage of Sales and All-You-Can Afford

With the ____________ of IMC budgeting, the total budget will decline when sales decline and increase as sales go up. Percentage of Sales and All-You-Can Afford Percentage of Sales and Objective and Task Competitive parity and Percentage of Sales All-You-Can-Afford and Objective and Task

Percentage of Sales and All-You-Can Afford

ABC corporation expects sales of $1,500,000 for next year and the promotion budget is limited to 5% of sales, the total promotion budget will be $75,000. ABC has employed the ______ method of budgeting. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Percentage of sales

With __________ the IMC budget is set at some fixed percentage of the previous year's sales or next year's forecasted sales. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Percentage of sales

Which of the following pricing strategies would you suggest to a retailer that wishes to encourage price-sensitive shoppers to postpone their purchases until the planned time of the sale for those products the retailer intends to place on sale: Random discounting Second market discounting Periodic discounting Deep discounting None of the above

Periodic discounting

The communication process inherent in _____________ is useful for ascertaining the customer's wants and needs, imparting customized information to customers about products or services, and for developing customer relationships, even if the contact does not immediately result in a "sale." Advertising Personal selling Sales promotion Public relations Publicity

Personal selling

When promotion messages are complex or when product benefits must be extensively demonstrated (e.g. computers, vacuum cleaners, DVD players), _________ is more appropriate. Advertising Personal selling Sales promotion Public relations Publicity

Personal selling

________ is the most important form of promotion for most industrial goods, particularly installations and major equipment, where product customization and demonstration are often essential. Advertising Personal selling Sales promotion Public relations Publicity

Personal selling

_____________ is an oral, one-on-one, often face-to-face communication between prospective buyers and sellers. Advertising Personal selling Sales promotion Public relations Publicity

Personal selling

Communications designed to convince consumers that a brand is the best solution to their purchasing problem are called ____________ communications. Reminder Informative Persuasive Educational Determinant

Persuasive

Incentives, such as coupons, rebates, and other forms of sales promotion are best classified as _______ communications. Reminder Informative Persuasive Educational Determinant

Persuasive

The physical movement of finished goods from producers to middlemen and, eventually, to consumers is:

Physical distribution

The purpose of ___________ to create awareness and trial for new products that are in the introductory stages of their product life cycles. Product advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Pioneering advertising

_______________ is used to develop primary demand for the product category, rather than demand for individual brands. Product advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Pioneering advertising

Which of the following companies is least likely to function as a channel captain in their respective supply chains? Pizza Hut Apple Walmart P&G Ralston-Purina

Pizza Hut

A penetration pricing strategy is most likely to be used when pricing objectives focus on: Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins. Manipulating consumers' psychological impressions of price as an indicator of product quality or status. Maximizing profits on a per unit basis. Pricing at the same level as competitors to avoid potential price wars Penetration pricing cannot be used in any of the situations suggested above.

Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins.

________ is variously called rent, tuition, interest, fee, toll, wage, commission, dues, salary, bribe, blackmail, and more. Price Value Exchange Utility Barter

Price

_________ is the only marketing mix element that generates revenue for the firm. Promotion Product Distribution Price All of the above yield substantial revenue for the firm.

Price

__________ is the amount of money or other form of remuneration that is charged for products or services. Price Value Exchange Utility Barter

Price

Understanding costs faced by the firm when making pricing decisions is important because: Costs constitute the maximum possible price that can be charged for a product. Prices can never be set lower than costs. Prices must be set with a knowledge of the costs required to make and sell the product. Prices are not related to costs Costs are directly proportional to prices charged by competitors

Prices must be set with a knowledge of the costs required to make and sell the product.

___________ are tactical pricing elements that typically reduce the computed base price of a product and help firms manage demand for the product. Price objectives Pricing techniques Pricing discounts Pricing allowances Cost-volume-profit analysis

Pricing discounts

The most common channel of distribution for consumer goods is _______ . - Direct from producer to consumer - Producer to Wholesaler to Retailer to Consumer - Producer to Retailer to Consumer - Producer to Agent to Retailer to Consumer

Producer to Wholesaler to Retailer to Consumer

Cajun Fire is a small producer of jalepeno and habanero pepper sauces. It does not have its own sales force. Which channel of distribution is it most likely to use?

Producer to agent to retailer to consumer

Which distribution channel is the manufacturer of small fireproof safes for businesses most likely to use?

Producer to industrial distributor to user

Consider the following statement: "If the net profit margin on each sales dollar earned is 5%, a supply chain operational cost savings of $5,000 yields the same return to the firm's bottom line as would a sales increase of $100,000." This statement reflects:

Profit leveraging of costs

___________ are tactical pricing elements that are intended to aid supply chain members in promoting the firm's product at the retail level. Price objectives Pricing techniques Pricing discounts Promotion allowances Cost-volume-profit analysis

Promotion allowances

Which of the following is not a common criticism of promotion? Promotion is misleading Promotion is unjustifiably expensive Promotion can classically condition some groups Promotion provides too much information to consumers

Promotion provides too much information to consumers

Revlon cosmetics paid one-half of the advertising cost for the large retail chain Macy's to run a series of ads on local cable TV channels. Each of the ads emphasized that Macy's carried the complete line of Revlon products. This would be an example of a: Promotional allowance Forward dating Seasonal discount Cash discount Quantity discount

Promotional allowance

_____________ is an attempt by firms to manage the publicity it receives by seeking to enhance the image of the firm and its products, or to communicate important company information to key publics. Advertising Personal selling Sales promotion Public relations Publicity

Public relations

A TV station runs a story about a company that is deemed to be "newsworthy." The company that is the subject of the news story does not pay for or directly sponsor the message. This is an example of ______ . Advertising Personal selling Sales promotion Public relations Publicity

Publicity

______________ is any message about a product, organization, person, or event that is communicated via non-personal media and is not paid for by a sponsor. Advertising Personal selling Sales promotion Public relations Publicity

Publicity

Mild claims of superiority in advertising are referred to as _________. False advertising Puffery Misleading advertising Deceptive advertising

Puffery

A ______ promotion strategy builds sales by promoting aggressively to the final buyer, usually the ultimate consumer. By stimulating demand with the final buyer, intermediaries are forced to stock and sell the product to satisfy this demand. Push Pull Primary demand Selective demand Distributor

Pull

Procter and Gamble employs extensive television and print advertising to create demand for its personal care products with consumers. Coupons, gifts, and premiums are employed at the point of purchase to stimulate trial and brand switching behaviors, as well as to create brand preference. P&G is employing a _________ promotion strategy. Push Pull Primary demand Selective demand Distributor

Pull

With _________ promotion, advertising is directed at ultimate consumers in order stimulate demand and influence intermediaries to stock the product advertised. Push Pull Primary demand Selective demand Consumer

Pull

Producers employ a wide range of promotions directed at intermediaries to motivate their selling efforts. Examples include dealer contests for middlemen's sales personnel, trade shows, slotting fees for retailers, and promotional allowances. These promotional tools are considered to be elements ____________ promotion. Push Pull Primary demand Selective demand Distributor

Push

With ________ promotion strategies producers heavily promote to wholesale and retail intermediaries. In turn, retailers actively promote the product to ultimate consumers. This strategy relies heavily on the aggressive selling efforts of the manufacturer's sales force to work with wholesalers and/or retailers. Push Pull Primary demand Selective demand Distributor

Push

Some manufacturers give ______________ to retailers to pass on to the retailers' sales clerks to encourage aggressive selling of specific items or lines. Cash discounts Slottine fees Trade discounts Push money Advertising allowances

Push money

Producers offer ___________ to encourage customers to buy in larger amounts or to make most of their purchases from the same seller. Functional discounts Quantity discounts Seasonal discounts Promotional allowances Trade discounts

Quantity discounts

A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a: Cash-and-carry wholesaler Specialty wholesaler Rack jobber Manufacturers' agent Broker

Rack jobber

Joe Duncan sells a wide assortment of "emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, provides the shelves and stocks the display, and monitors the inventory for his customers. Joe is a: Selling agent Rack jobber Cash & carry wholesaler Truck wholesaler (jobber) Manufacturers' agent

Rack jobber

When Ford airs advertising that focuses on the functional characteristics of its cars, such as quality, reliability, gas mileage, warranties, and service they are employing ____________ in their ads. Emotional appeals Rational appeals Functional appeals Benefit appeals Utilitarian appeals

Rational appeals

With respect to the appeals than can be employed in promotion, the type of appeal that emphasizes communicating information about concrete benefits, functions, or characteristics that are associated with the product are called ______ . Emotional appeals Rational appeals Functional appeals Benefit appeals Utilitarian appeals

Rational appeals

The likely consequences of firms choosing to engage in non-price competition include all of the following except __________. Reduced probability of price wars with other firms. Firms can differentiate based on product attributes and other elements of the marketing mix. Greater ability to build brand image and equity. Lower propensity for firms to collude with one another to maintain prices Reduced ability to raise prices.

Reduced ability to raise prices.

Which of the following is not a benefit of business format frachises for the franchisors? - Risk is shared with franchisees - Quicker to expand the franchise geographically to other market areas - Less capital is needed by the franchisor for expansion. - Reduced exposure to potential federal and state regulation.

Reduced exposure to potential federal and state regulation.

Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes stimulate added sales inducing the perception that consumers are getting a 'deal.' Alberston's is using: Captive pricing Skimming pricing Reference pricing Price lining Every-day low pricing

Reference pricing

The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a fivescreen cinema, and is populated by more than 200 select retail department stores, specialty stores, and restaurants for its patrons to visit. The Galleria is a ____________. Neighborhood center Community center Regional center Power center Factory outlet mall

Regional center

____________ includes all activities involved in selling goods and services to ultimate consumers for their own personal use. Wholesaling Consumption Retailing Distribution Logistics

Retailing

For which of the following products is selective distribution most likely?

Revlon cosmetics

In addition to regulating discriminatory pricing activities, the ___________ also limits firms' use of promotional allowances as they attempt to incentivize middlemen. FTC Act of 1914 Robinson-Patman Act Lanham Trademark Act Trademark Law Revision Act.

Robinson-Patman Act

____________ is a paid form of communication that is temporarily used to stimulate purchases, as well as enhance salesperson and dealer effectiveness. Advertising Personal selling Sales promotion Public relations Publicity

Sales promotion

______________ is probably the best promotional tool for stimulating impulse purchases and brand switching for low involvement consumer convenience goods. Advertising Personal selling Sales promotion Public relations Publicity

Sales promotion

______________ is probably the best promotional tool for stimulating new product trial and encouraging brand switching for consumer convenience goods. Advertising Personal selling Sales promotion Public relations Publicity

Sales promotion

Smaller independent retailers face high failure rates. Which of the following is NOT among the possible actions which can cut down on the odds of failure for these smaller retailers? Seek to tailor their merchandising and customer service to the precise needs of their local market Idenfity a unique niche not targeted by competitors in which they can attain a differential advantage Seek to become part of a franchise organization Seek to become part of an established vertical marketing system Seek to become part of an established network marketing system

Seek to become part of an established network marketing system

____________ limits the sale of products to a smaller range of retail outlets. This form of distribution is most appropriate for shopping and some specialty products that are tailored to meet the needs of well-defined market segments. Direct distribution Selective distribution Exclusive distribution Intensive distribution Mult-channel distribution

Selective Distribution

The typical markup (expressed as a percent) is the: - Selling price minus the cost of the item, divided by the cost of the item--times 100. - Selling price of an item, divided by its cost--times 100. - Selling price minus the cost of the item, divided by the selling price--times 100. - Selling price minus the cost of the item, divided by the average fixed cost--times 100. - Cost of an item divided by its selling price--times 100.

Selling price minus the cost of the item, divided by the selling price--times 100.

Which of the following is not a form of non-store retailing? Vending Party plan selling Telemarketing Direct mail Social network selling

Social network selling

Merril Lynch, an investment firm, sorts investment opportunties based on "risk" and "return" from which its clients can choose. Merril-Lynch is peforming which channel function? Accumulating Allocating Negotiating Assorting Sorting

Sorting

When eggs are packaged into different sizes (medium, large, jumbo) and grades (A or AA) or lumber products, such as 2x4 studs, are graded according to number and severity of knots or splits, which channel function is being performed? Accumulating Allocating Negotiating Assorting Sorting

Sorting

The message _________ is the apparent originator of the message and can be a person, a company, or an inanimate figure, such as a cartoon character. Presenter Spokesperson Source Broadcaster Initiator

Source

Which of the following is not a major determinant of source credibility? Source expertise Source trustworthiness Source believability Source attractiveness Source honesty

Source attractiveness

Family and friends typically score high on those factors that contribute to source credibility except: Source expertise Source trustworthiness Source believability Source honesty

Source expertise

____________ attempt to avoid price competition, preferring instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortments of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff. Off-price retailers Specialty stores Factory outlets Category killers Department stores

Specialty stores

Vending is a relatively expensive form of retailing due to costs associated with all of the following except ____________. Investment in equipment Upkeep on equipment Theft and vandalism of equipment Spoilage of products not purchased before their expiration date.

Spoilage of products not purchased before their expiration date.

Which of the following is not one of the purposes of advertising? Inform consumers of features, benefits, availability Remind buyers of features, benefits, availability Persuade buyers to purchase Stimulate immediate action in retail settings

Stimulate immediate action in retail settings

The objectives of promotion during the growth stage of the PLC are primarily to: Stimulate primary demand Create brand awareness Induce product trial Convince intermediaries to stock and promote the product Stimulate selective demand

Stimulate selective demand

Which channel function creates time utility for consumers? Accumulating Allocating Storage Assorting Sorting

Storage

Amanda is examining advertising, social media posts, and company websites, as well as talking to sales people to acquire information as she considers alternative DVD players for purchase. Which stage in the Hierarchy of Communications Objectives is illustrated in this example? Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Structuring beliefs and attitudes

During the __________ stage of the Hierarchy of Communications Objectives, the key to differentiating the advertiser's brand from competitors is to emphasize determinant attributes in promotion communications. Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Structuring beliefs and attitudes

Albertsons, Kroger's, Safeway, H.E.B., and A&P are nationally located corporate chains of ______________ . Supercenters Supermarkets Discount stores Category killers Department stores

Supermarkets

The channel of distribution for consumer products does not include which of the following?

Suppliers of component parts to the producer

_________ are groups of independent firms involved in the process of making products or services available for use or consumption by organizations or consumers. Channels of distribution Supply chains Physical distribution Logistics channels Transportation

Supply chains

When setting prices, the price floor is usually defined by ______ of producing and marketing the product. The total costs The total fixed costs The average variable costs The average total costs None of the above

The average total costs

When a seller offers a cash discount with terms of 3/10, n/60, this means: - The buyer gets a discount of 10 percent if the bill is paid within 3 days; otherwise the entire amount is due in 60 days. - Payment is due in 10 days, or else there is a 3 percent late-payment penalty. - Payment is due in 60 days, or else there is a 3 percent late-payment penalty. - The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days. - If the buyer pays within 60 days, there is a 3 percent discount; beyond that is a 10-day grace period before there is a penalty.

The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days.

The sequence of organizations and individuals through which finished consumer goods move is called:

The channel of distribution

With respect to the Communications Process, the promotional medium selected to transmit the message to the receiver is called ____________ . The communications channel Transport network Communications network Conveyance channel Transmission medium

The communications channel

The target audiences for a firm's public relations effort is least likely to include which of the following? Existing and potential customers Government agencies and regulatory bodies The general public The firm's competitors Company employees

The firm's competitors

Which of the following is least likely to cause problems when employing historical data to estimate demand curves? Competitors experimented with multiple price changes during the time frame under analysis. Price controls were imposed on the industry by the Federal government during the period in which the pricing data were collected. The seller made several major changes to its promotion program during the time in question. The seller introduced several new products that were considered to be category extensions during the time in question. A consumer rights advocacy group mounted a major campaign against the company and its products during the time under analysis.

The seller introduced several new products that were considered to be category extensions during the time in question.

Joe lives in Hawaii and is a frequent buyer of antiques on Internet auction sites. He is used to paying higher shipping costs than his brother who lives in Colorado and who also likes to buy antiques on the Internet. The price differential is most likely because: The current legal interpretation of the Robinson-Patman Act required the price differential The rules and regulations of the Federal Trade Commission required the price differential The seller set pricing differentials based on the existence of inverse demand The seller probably was using zone-delivered pricing. The seller was using cash discounts.

The seller probably was using zone-delivered pricing.

The primary factor that distinguishes between a merchant wholesaler and an agent is: The agent takes title; the wholesaler does not. The wholesaler takes title; the agent does not. The wholesaler provides many more services than does the agent. Wholesalers account for a larger sales volume than do agents None of the above

The wholesaler takes title; the agent does not

The major advantage to using the competitive parity of IMC budgeting is: The budget is directly linked to the firm's promotion objectives. Budget is likely to be appropriate since it is based on what knowledgeable competitors are budgeting. Such budgeting implicitly assumes that sales are a direct result of promotional spending. The budget is carefully constructed since time has been spend deconstructing competitors' promotion programs. There are no real advantages.

There are no real advantages.

Factory outlet malls usually are located in outlying, rural areas in order to: Better serve the needs of smaller communities To avoid the higher costs of doing business in urban locations To avoid traffic congestion associated with urban locations To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands. All of the above

To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands.

In price determination, given a particular selling price, the break-even point is where: Profit is maximized Sales volume is maximized Marginal cost equals total sales Marginal cost equals marginal revenue Total costs of the product equals total sales revenue from the product.

Total costs of the product equals total sales revenue from the product.

The use of coupons, free samples, displays, and other point-of-sale techniques assume that consumers are at which stage in the Hierarchy of Communications Objectives? Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Trial and purchase

_____ carry a select line of perishable products and deliver them by trucks to retail stores. Full-service wholesalers Rack jobbers Truck jobbers Commission merchants Drop shippers

Truck jobbers

Avis in some of its early ads began by pointing out that Avis was not the largest car rental company and then essentially discounted the "deficiency" by stating "...we try harder.'' Avis was employing ___________ . One-sided messages Two-sided messages Positive-point messages Single-point messages Benefit-oriented messages

Two-sided messages

Wendy's fast-food restaurant chain priced several of its more popular menu items at $.99 while raising the price of some of its upgraded meal deals. This pricing strategy is an example of _____ pricing because the chain is trying to improve the customer's perception of the ratio of benefits received to the product's price. Fair trade Value Psychological Cost-plus Penetration

Value

_______ is the ratio between the utility you receive from a product and the price you give up in exchange for that product. Price Value Exchange Utility Barter

Value

Last summer, to earn money for their college tuition, George and Tom operated a food kiosk at Clearwater Beach, Florida for 3 months. They sold soft drinks, chips, crackers, and candy bars. A month before they were planning to open, Larry found a location that rented for $500 a month and a small refrigerator unit which they rented for $60 per month. Alan found distributors for the food products as well as for the paper products that they would need. Alan also purchased a business license for $80 and bought 3-month's worth of liability insurance for $100. The cups, straws, napkins, and extra sales people needed to staff the stand are all examples of: Marginal costs Break even points Variable costs Fixed costs Average costs

Variable costs

_____________ is when a firm operates at more than one level in a marketing channel or supply chain.

Vertical integration

The VMS in which a large scale wholesaler brings together or sponsors a number of independent retailers is called a: - Retailer cooperative - Producer cooperative - Vertical wholesale system - Voluntary chain - Voluntary wholesale system

Voluntary chain

__________ communication entails any positive or negative opinions or experiences by potential, current, or former customers about products, brands, or marketing organizations transmitted through digital media. WOM Opinion-leader Word-of-Mouth Peer-to-Peer Social media

WOM

____________ engage in both wholesale- and retail-level selling. They attract smaller businesses who can purchase at wholesale prices. Consumers usually pay about 5% more for products than do business customers. Business and consumers generally pay a small annual membership fee. Supercenters Supermarkets Discount stores Warehouse clubs Convenience stores

Warehouse clubs

Whether a given transaction is classified as a wholesale sale or as a retail sale essentially depends on: Whether the seller is a wholesaler or a retailer. Whether the product will be used by an organization or by a consumer. Whether the seller procured the product from a manufacturer or a wholesaler. Whether the product involved is sold at wholesale or retail price. The quantity of goods involved.

Whether the product will be used by an organization or by a consumer.

The primary distinction between voluntary chains and retailer cooperatives is: Whether they are set-up by wholesalers or by retailers Voluntary chains tend to offer more benefits to members than do coops. Retailer cooperatives tend to be more profitable than voluntary chains Voluntary chains are limited to hardware stores, while coops serve the grocery industry

Whether they are set-up by wholesalers or by retailers

The main difference between retailer cooperatives and voluntary chains is: Their offensive vs. defensive postures The length of the distribution channel The types of promotion used Who organizes them Their pricing strategies

Who organizes them

Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. When making sales to its customers, Grainger is engaged in _____________. Retailing Wholesaling Channel management Logistics Distribution management

Wholesaling

__________ include all activities involved in the marketing and distribution of goods and services from one business to other businesses. Retailing Wholesaling Channel management Logistics Distribution management

Wholesaling

Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. Grainger is a _____________ . Retailing intermediary Wholesaling intermediary Facilitating agent Broker Manufacturer's agent

Wholesaling intermediary

The power of __________ communications is based on the fact that somebody whom the message recipient knows and likes becomes the credible, believable, and trustworthy face of the brand. Gossip Opinion-leader Word-of-Mouth Peer-to-Peer

Word-of-Mouth

___________ communications entail informal person-to-person communication between a non-marketing communicator and a prospective customer about the ownership or characteristics of a product or brand. Gossip Opinion-leader Word-of-Mouth Peer-to-Peer

Word-of-Mouth

____________ is any form of paid communication that is conveyed via a "non-personal medium." Advertising Personal selling Sales promotion Public relations Publicity

advertising

When consumers engage in high-involvement, extensive decision-making, for major durable goods, which elements of the promotional mix should be emphasized? Advertising and sales promotion Advertising and personal selling Personal selling and sales promotion Personal selling and publicity Sales promotion and publicity

advertising and personal selling

The forms of promotion most important for lower unit value consumer convenience goods are: Advertising and personal selling Advertising and sales promotion Advertising and publicity Personal selling and sales promotion Publicity and public relations

advertising and sales promotion

For which of the following products would a manufacturer be most likely to offer a seasonal discount? Aspirin Weight-training gloves Air conditioning system Microwave ovens Forklift trucks

air conditioning system

The television home shopping format appeals to some consumers for which of the following reasons? Prices are often perceived as lower Sales personnel are often perceived as friendlier and better informed Consumers can shop from the convenience of their own homes Consumers can see how products work and understand the benefits before they purchaseProducts can be easily demonstrated and plenty of time exists to explain the product's benefits All of the above

all of the above

With respect to telemarketing, which of the following techniques are employed for identifying potential prospects? Cold-calling from existing phone lists. Random digit dialing Lists of current or past customers Lists purchased from third party vendors All of the above

all of the above

A tire retailer is advertising a very low price on a popular size tire. When a customer comes into the store, the clerk says the low-priced item is sold out, and tries to convince the customer to buy the top-of-the-line model--claiming the low priced model is not a very good buy even at the low price. This is an example of: full-line pricing value in use pricing price lining bait pricing leader pricing

bait pricing

When Jon Jones decided to sell 10 acres of land, he contacted Leona Anderson. She showed the land to a potential buyer who wanted to build a home on the site, explained the market conditions for land in the area, and helped negotiate the terms of the sale. She left the final decision about the sale up to Jon and the young couple. Smalley is most likely a: Selling agent manufacturers' agent drop shipper broker commission merchant

broker

The manager of the San Francisco Seafood Company knows the market for its Tilapia is geographically quite large. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood can sell its Tilapia only a few months each year, it does not need continuous market representation. The San Francisco Seafood and other Tilapia producers should use: Selling agents Manufacturers' agents Drop shippers Brokers Commission merchants

brokers

When Nintendo sets a relatively low price on its game units to stimulate more demand for its game cartridges, it is using Prestige pricing Price lining Captive product pricing Bundled pricing Bait pricing

captive product pricing

For which of the following products is exclusive distribution most likely? Cartier watches Intel micro-processors Chevrolet Camaros Polo sportswear Channel perfume

cartier watches

Best Buy (consumer appliances and electronics), Staples (office supplies, furniture, computers, and software), Home Depot (home building supplies and equipment), and Bed Bath & Beyond (home decorating products) are classified as _________ . Off-price retailers Specialty stores Factory outlets Category killers Department stores

category killers

____________ offer substantial discounts and probably the best selection of brands for the types of products they merchandise. The retailing strategy is to attract customers through relatively lower-priced offerings and broader selections, thereby eliminating the competition. Off-price retailers Specialty stores Factory outlets Category killers Department stores

category killers

_________ are groups of two or more retail stores operated by the same entity. Chain stores Independent retailers Corporate chains Internet retailers Rack jobbers

chain stores

The primary benefit to consumers when buying from a vending machine is: Lower prices Higher quality products No requirement to interface with a retail salesperson Convenience Cleanliness

convenience

______________ typically are well-financed and centrally operated. Their size and financial strength provides them with significant scale economies in purchasing and operations. Multi-unit chains Corporate chains Independent retailers Rack jobbers Superstores

corporate chains

When promotion is used to encourage consumers to purchase less, or at a later date, they are attempting to reduce demand for the advertised product. This promotion objective is called ________ . De-marketing Demand reduction marketing Controlled marketing Demand off-set marketing Re-marketing

de-marketing

The Communications Process from the message sender to the message receiver begins with the sender formulating the "message" and ends with _________ . Encoding the message by the receiver Transmitting the message via a communications channel Decoding the message by the receiver Acting on the decoded information

decoding the message by the receiver

The "law of demand" is associated with: Demand curve in which demand increases as price increases. Demand decreases as price increases. Demand curves in which demand is only price elastic Demand curves in which demand is only price inelastic None of the above

demand decreases as price increases.

_________ are owned and operated by corporate chains and carry a broad mix of product lines organized by "departments." Examples include JC Penney, Nordstrom's, Sears, Dillard's, and Macy's. Off-price retailers Specialty stores Factory outlets Category killers Department stores

department stores

____________ offer a full range of services including credit, delivery, generous return privileges, hair salons, travel services, automobile insurance, and (occasionally) restaurants. Sales personnel are expected to be helpful, courteous, and knowledgeable. Each department in inside the store operates as an autonomous unit that is responsible for its own buying, merchandising, revenue, and profits. Off-price retailers Specialty stores Factory outlets Category killers Department stores

department stores

During the "structuring beliefs and attitudes" stage of the Hierarchy of Communications Objectives, the key to differentiating the advertiser's brand from competitors is to emphasize ___________ in promotion communications. Determinant attributes Key attributes Differential attributes Performance characteristics Emotional characteristics

determinant attributes

Direct mail, telemarketing, on-line marketing, and direct response advertising are all components of ___________ . Direct marketing Direct selling In-store retailing Soft marketing as opposed to brick and mortar retailing Distance marketing

direct marketing

Bell and Howell advertises its high intensity flashlights regularly on TV and encourages consumers to place orders via the telephone, paying with their credit cards. Bell and Howell is employing ________ . Direct mail Direct response advertising On-line retailing Direct selling Telemarketing

direct response advertising

Lillian Vernon began her catalog empire with an advertisement for her purses in Seventeen magazine. Young ladies were encouraged to place orders via the telephone or mail. Lilian Vernon was employing _______. Direct mail Direct response advertising On-line retailing Direct selling Telemarketing

direct response advertising

Door-to-door selling and party plan selling are both examples of ________ . Telemarketing Direct selling In-store retailing Direct retailing Mail order selling

direct selling

Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as ___________ . Off-price retailers Specialty stores Discount stores Category killers Department stores

discount stores

Steve Johnson sells fiberglass resins and fiberglass fabrics to the many small sailboat manufacturers in Florida. He takes title to the products but does not handle them. Instead, the materials are shipped directly from the producer to the sailboat manufacturers. Steve is a: Cash & carry wholesaler Manufacturer's agent Specialty wholesaler Drop shipper Selling agent

drop shipper

Todd Jeffries sells bulk lubricants and solvents to the many small machine shops in southern California. He takes title to the products but does not handle them. Instead, the lubricants and solvents are shipped in 25 to 50 gallon barrels directly from the producer to the machine shops. Todd is a: - cash-and-carry wholesaler - manufacturers' agent - specialty wholesaler - drop-shipper - selling agent

drop-shipper

A retail store's __________ include building architecture and storefront, parking, landscaping, surrounding buildings, and the general drive-by appearance that contribute to the consumer's initial image of the store. External Atmospherics Exterior personality Exterior position Exterior brand image

external atmospherics

Wells Fargo provides the financial services that allow supply chain members (wholesaling and retailing intermediaries) to establish and operate their businesses. In this context, Wells Fargo is a(n) ________. Investment banker Financial broker Financial agent Industrial distributor Facilitating agent

facilitating agent

Warehouses run by third party operators provide access to long-term and short-term specialized storage and inventory management facilities. In the context of supply chains, these warehousing firms are called _________. Storage intermediaries Facilitating agents Vertical integrators Warehousing agents Channel integrators

facilitating agents

_____________ are not directly involved in the transfer of title for products moved through distribution channels. They do, however, provide a range of specialized support services that allow supply chains to function more efficiently. Wholesaling intermediaries Retailing intermediaries Agents Industrial distributors Facilitating agents

facilitating agents

__________ usually limit sales to products produced by a single manufacturer. These stores are owned and operated by the manufacturer and, therefore, exemplify corporate vertical marketing systems. Off-price retailers Specialty stores Factory outlets Category killers Department stores

factory outlets

Which of the following is not a major trend associated with IMC? - From preferred use of traditional marketing communications to greater engagement with digital/interactive communications. - From the employment of large, corporate advertising firms to greater reliance on smaller, more specialized advertising production houses. - From greater use of mass media (ABC, NBC or CBS, or Time magazine) to more specialized media (Twitter, Instagram, and Spotify). - From low-accountability in the terms of the effectiveness of communication expenditures (i.e., what advertisements are and are not working effectively) to high-accountability in terms of communication-spend effectiveness. - From limited, one-way buyer-seller connectivity to more pervasive, two-way (reciprocal) connectivity.

from the employment of large, corporate advertising firms to greater reliance on smaller, more specialized advertising production houses.

Which of the following is not an advantage of corporate chain stores over smaller independent retailers? Better financed with more resources Access to experienced expert management Scale economies in purchasing and promotion Greater flexibility in operational decision-making at the individual store level Greater brand recognition

greater flexibility in operational decision-making at the individual store level

Informative messages are generally more appropriate during which stages of the PLC? Introduction and growth Growth and maturity Maturity and decline Introduction and decline

growth and maturity

Little active information search and alternative evaluation occurs with low involvement decisions. Which promotional media are most effective at reaching and influencing consumers under these conditions? High imagery advertising media, such as TV and billboards. Print media, such as magazines and newspapers Publicity gleaned from newspapers and TV Strong public relations programs Social media advertising

high imagery advertising media, such as TV and billboards

The strategy of market-skimming pricing is especially suited for new products because: - Markets cannot be effectively segmented on an income basis. - Price competition is typically most important in the introductory stage of the product life cycle. - High initial prices can keep demand from exceeding supply. - Profits are more important than recouping costs. - All of the above are true.

high initial prices can keep demand from exceeding supply.

Which of the following is not among the actions that category killers such as Best Buy have taken to effectively compete with department stores and internet retailers, such as Amazon? Price matching on select merchandise Adding value-enhancing services Liberal return policies Improved merchandising by expanding the merchandise mix Enhanced customer relationship management

improved merchandising by expanding the merchandise mix

The majority of retailing establishments in the US today are: Chain stores Corporate chain stores Independent retailers Internet retailers Franchise stores

independent retailers

__________ attempts to achieve maximum retail exposure for a product. Every suitable retail outlet is targeted. This type of distribution is best suited to consumer convenience goods and some shopping goods.

intensive distribution

Advertising is used extensively during the ____________ stage of the PLC to create awareness and stimulate product trial. Introduction Growth Maturity Decline All of the above

introduction

Prices for products are usually at their highest point during the ________________ stage of the product's life cycle. Conceptualization Introduction Maturity Decline Harvesting

introduction

The Wine Emporium features wines from all over the world. Along with its wines, the firm sells "The Complete Wine Guide" for $4.99. It sells this book at a price substantially below its regular retail price of $19.95 in order to attract wine shoppers to its store and increase its wine sales. This would be an example of: a single-price strategy leader pricing cost-plus pricing price lining penetration pricing

leader pricing

The supermarket form of retailing normally commands profit margins, on average, of: Less than 5% 5% - 10% 10% - 15% 15% - 20% More than 20%.

less than 5%

The final step in the price setting process is __________. Setting price objectives Managing price Identifying price strategies Setting base price Adjusting base price with various discounts and allowances

managing price

The number of different product lines carried by a retailer is its ________ Product mix Merchandise mix Product line breadth Merchandise breadth Portfolio width

merchandise breadth

The classification system for in-store retailers employed in the text is based on the ______________ of the retailer. Merchandise mix Degree of effort consumers expend in visiting facilities Location Size Type of ownership

merchandise mix

Stores such as Family Dollar and Dollar General tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls

neighborhood centers

When firms seek to differentiate their product offerings by emphasizing different promotion techniques they are said to be employing ___________ . Price competition Monopolistic competition Non-price competition Promotion competition Competitive positioning

non-price competition

____________ occurs when products are not sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending. In-store retailing Non-store retailing Internet retailing Social network retailing Out-bound retailing

non-store retailing

___________ include stores such as Ross Dress For Less, Dress Barn, T.J. Maxx, DSW Designer Shoe Warehouse, and Marshall's. Off-price retailers Specialty stores Factory outlets Category killers Department stores

off-price retailers

outdated or out-of-season brand name merchandise at prices that are often below those charged by other discount stores for comparable merchandise. Off-price retailers Specialty stores Factory outlets Category killers Department stores

off-price retailers

Organic Building Products Co. wants to keep its inventory low. Which of the following would be MOST likely to encourage customers to take over more responsibility for the storage function? Specifying invoice terms of 2/10, net 30 Offering a noncumulative quantity discount Using zone pricing Offering a cash discount Setting a skimming price

offering a noncumulative quantity discount

Promotion messages that point out only the positive aspect of a brand are called _________. One-sided messages Two-sided messages Positive-point messages Single-point messages Benefit-oriented messages

one-sided messages

Mary Kay, Tupperware, Stanley Home Products, and Magic Chef all exemplify which form of direct selling? Party plan selling Door-to-door selling In-home selling Sponsored selling Group selling

party plan selling

____________ has evolved to reduce some of the more egregious aspects of traditional door-to-door selling. With this form of selling, salespeople recruit prospects to host get-togethers at their homes or their places of work. Party plan selling Direct selling In-home selling Sponsored selling Group selling

party plan selling

______________ is considered to be the only promotional medium capable of "closing" a sale and directly generating revenue for the firm. Advertising Personal selling Sales promotion Public relations Publicity

personal selling

Lowe's, Home Depot, Staples, Target, Walmart, Barnes & Noble, Bally's or LA Fitness Health Clubs, PETSMART, Old Navy, Best Buy, Bed, Bath & Beyond, and Toys-R-Us are typically located in ____________. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls

power centers

____________ are large un-enclosed shopping centers that are normally anchored by large category killers and off-price retailers rather than traditional department stores. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls

power centers

A profit-oriented manufacturer of a consumer durable product faces a demand curve that is upward sloping to the right until extremely high prices are reached. For these latter prices, the demand curve tips over and is downward sloping. Which of the following pricing approaches is most consistent with the demand curve described? Prestige pricing Average cost-pricing Bait pricing Penetration pricing Experience curve pricing

prestige pricing

__________ is a measure of the utility that exists or is perceived to exist in a product. Price Value Exchange Utility Barter

price

In the price setting process, __________ are considered to be the role that price is expected to play in the firm's marketing program. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above

price objectives

In the price setting process, __________ are the fundamental approaches to setting and managing price to achieve the firm's objectives. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above

price strategies

Advertising, personal selling, sales promotion, publicity, and public relations comprise the firm's __________. Marketing mix Communications mix Sales mix Promotion mix Advertising mix

promotion mix

For featuring Lego Sets prominently in its store window, Toy Emporium, a store that carries educational toys, received a free motorized Ferris Lego Wheel kit, valued at $150. This is an example of a: Forward dating Seasonal discount Cash discount Promotional allowance Rebate

promotional allowance

Typical goals of ____________ are to garner positive news releases, arrange interviews between the media and the firm's spokespersons, lobby governmental agencies, support charitable events, and engage in corporate (institutional) advertising. Advertising Personal selling Sales promotion Public relations Publicity

public relations

With ______ promotion, advertising and other promotion techniques are directed at intermediaries to convince them to stock the advertiser's products. Push Pull Primary demand Selective demand Distributor

push

A grocery store chain has decided to sell a small assortment of fast moving hardware items. However, it is not certain what stock to carry in which stores and does not want to leave the decision to the local store manager. The chain could use a: Cash-and-carry wholesaler Specialty wholesaler Rack jobber Manufacturers' agent Broker

rack jobber

With respect to telemarketing, ____________ is (are) useful for cold-calling on prospects who may have unlisted numbers. Random digit dialing Competitors' customer call lists Purchased data bases of prospects The FTC's no-call lists On-line phone lists

random digit dialing

Which of the following is not a response by supermarkets to improve their profit margins? Reduced reliance on technology to cut costs Vendor assistance to help manage inventory and restock shelves Adding higher margin non-food product lines and services Adding private lable brands Using promotional mechanisms to build store loyalty

reduced reliance on technology to cut costs

Which of the following is not a response by supermarkets to improve their profit margins? Increased use of technology to improve customer service Reduced reliance on vendor assistance to help manage inventory and restock shelves Adding higher margin non-food product lines and services Adding private label brands Using promotional mechanisms to build store loyalty.

reduced reliance on vendor assistance to help manage inventory and restock shelves

America's largest ___________ is the Mall of America, located outside of Minneapolis. The mall contains over 800 stores, including 100 restaurants and nightclubs. The mall also hosts a theme park, hotels, miniature golf courses, and water slides. Neighborhood center Community center Regional center Power center Factory outlet mall

regional center

_____________ are major shopping centers, usually fully enclosed. These centers are anchored by several major department stores that are intermingled with a variety of specialty stores. Most of these well-branded specialty stores belong to corporate chains or ownership groups. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls

regional centers

John is considering the purchase of a new car. As he evaluates the brands in which he is most interested he is becoming increasingly concerned with the trade-offs between performance, style, quality, and comfort and price. He is also beginning to think about the other "costs" of acquiring the car such as what others will think of his choice. John apparently is evaluating the ___________ of the alternatives being considered. Risks Relative values Utilities Merits Exchange rates

relative values

_______________ exist and operate as the last link in supply chains, primarily making sales to ultimate consumers. Wholesaling intermediaries Retailing intermediaries Agents Industrial distributors Facilitating agents

retailing intermediaries

Amazon.com sells products via the Internet predominantly to ultimate consumers for their own personal or household use. Amazon is a(n) __________. Dot.com Wholesaling intermediary Internet distributor Retailing intermediary Facilitating agent

retailing intermediary

___________ supports and augments advertising and personal selling efforts. It consists of activities that provide short-term incentives aimed at inducing desired responses from customers. Advertising Personal selling Sales promotion Public relations Publicity

sales promotion

_____________ includes the use of coupons, games, contests, free samples, rebates, frequent-flyer programs, in-store displays, in-store product demonstrations, free gifts, and travel vacations for salespeople. Advertising Personal selling Sales promotion Public relations Publicity

sales promotion

A _____ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output. Selling agent Manufacturers' agent Drop shipper Broker Commission merchant

selling agent

Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center. Each of the companies designs and produces computer components. Sophie has almost complete control of all marketing activities since the engineers who started the companies lack marketing experience and want to focus on what they do best --- inventing things. Sophie is paid a substantial commission on all sales. She is a: Selling agent Manufacturers' agent Broker Specialty wholesaler Truck jobber

selling agent

A reduction from list price given to middlemen to get shelf space for a product is a: Brokerage allowance Trade discount Push money allowance Self allocation Slotting allowance

slotting allowance

One of the major difficulties of zone-delivered pricing is determining zone boundaries _____________ . That have the same number of customers So as to avoid charges of illegal price discrimination That are equal in dollar sales potential Such that the prices are the same for each zone That are equal in geographic size

so as to avoid charges of illegal price discrimination

The firm's promotion mix consists of all of the following except _______ . Advertising Personal selling Sales promotion Social media Publicity and public relations

social media

for which of the following products is a manufacturer most likely to use intensive distribution? Vacuum cleaners Silk flowers Mountain bikes Softdrinks Latex paint

soft drinks

When producers and channel intermediaries separate products into categories based on differences in "grade," or some other aspect of "quality," they are performing the ___________ channel function.

sorting

The perceived believability, expertise, and trustworthiness of the message source can be important for assuring acceptance of the message and is called __________ . Message source effect Source acceptance Source importance Source credibility None of the above

source credibility

a full-service wholesaler in Dallas takes title to the products it stocks and sells i.e. a complete line of home repair products for small, independently owned hardware stores. This wholesaler is a: Broker Specialty (limited line) wholesaler Truck distributor Manufacturers' agent General merchandise wholesaler

specialty (limited line) wholesaler

Retailers like The Gap, Victoria's Secret, Bath & Body Works, or Barnes & Noble Booksellers, Hard rock Café, Red Lobster, and On The Border are classified as: Off-price retailers Specialty stores Factory outlets Category killers Department stores

specialty stores

The inventory numbers given to products stocked by retailers are called: Stock Keeping Units Retail Inventory Units Slotting Units Stocking Inventory Units

stock Keeping Units

____________ are slowly dying and probably will be phased out incrementally as consumer demand shifts in favor of the greater convenience of e-commerce and preferences for smaller, local retail facilities over big-box retailers. Supercenters Specialty stores Discount stores Category killers Department stores

supercenters

additional services such as fast food restaurants, dry cleaning, banking, check cashing, automobile servicing, and optical centers. Supercenters Specialty stores Discount stores Category killers Department stores

supercenters

The main difference between agent middlemen and merchant wholesalers is: - That agent middlemen do not own the products they sell--while merchant wholesalers do. - That no agent middlemen physically handle products--while all merchant wholesalers do. - Their attitudes regarding the marketing concept. - The kind of selling they do. - There is no difference--an agent middleman IS a merchant wholesaler.

that agent middlemen do not own the products they sell--while merchant wholesalers do.

A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country. How should the company structure its sales program? - The company should use sales branches everywhere, since it will cost more to use manufacturers' agents. - The company will probably have to rely only on manufacturers' agents, since they will only be willing to take the widely scattered markets if they can have the good territories too. - The company should use its own sales branches in the concentrated territories and agents, probably manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches. - The company should use manufacturers' agents in the best territories and sales branches in the others, since good agents won't work the smaller territories. - All of the above are good alternatives.

the company should use its own sales branches in the concentrated territories and agents, probably manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches.

A retailer might expect a stocking allowance: To pass along to retail salesclerks who aggressively sell the product. To offset the handling costs for a new product. For paying the supplier's invoice before the product is delivered. If the manufacturer can't fill an order by the promised delivery date. None of the above--stocking allowances only apply to wholesalers.

to offset the handling costs for a new product.

_____ are reductions from the list price offered to middlemen in payment for marketing functions they will perform. Markdowns Cash discounts Quantity discounts Slotting fees Trade or functional discounts

trade or functional discounts

__________ involves the physical movement of finished goods, raw materials, and component parts between channel members.

transportation

When marketers of automobiles offer to let consumers "take a car home" for an extended test drive and offer generous return policies, they are emphasizing objectives at which stage of the Hierarchy of Communications Objectives? Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

trial and purchase

The term "price competition" in a marketing context means that firms have opted to employ price aggressively as a major component of their marketing program.

true

Promotional message pointing out both the positive features and negative deficiencies (and then refuting the negatives) are called ___________ .

two-sided messages

Which method for estimating demand curves is least appropriate for the marketer of a new product. Using buy-response data Using historical ratios Using test market data Using managerial judgement

using historical ratios

When production stops (i.e. no units produced), _________ becomes zero. Variable costs of production Marginal costs Total costs Fixed production costs Total fixed costs

variable costs of production

Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing? Vending Direct response advertising Direct selling Mechanical marketing None of the above

vending

_____________ are large-scale, member-only, mass merchandisers that combine cash and carry wholesaling with discount retailing. Supercenters Supermarkets Discount stores Warehouse clubs Convenience stores

warehouse clubs

The major distinction between a retail and a wholesale transaction is: Whether the seller is a wholesaler or a retailer. Whether the product will be used by an organization or by a consumer. Whether the seller procured the product from a retailer or a wholesaler. Whether the product involved is sold at a wholesale or a retail price. The quantity of goods involved.

whether the product will be used by an organization or by a consumer.